Each of us at least once in our lives needed a cash loan. It can come in handy in any life situation. But sometimes you don’t have the opportunity to borrow from friends or relatives, or you just don’t want to show your critical financial situation. In this situation, there is only one way out: contact one of the many financial institutions. But what if the credit history is badly damaged or there is no way to document your income? There is an exit. It is worth taking one of the types of secured loans.
What is a loan
Credit is a type of consumer loan, which is issued for a certain period of time and at an individual percentage of the annual rate.
Loans can be of different types and categories. It can be:
- Target Loan;
- credit card;
- installment card;
- a loan secured by certain property.
Basictypes of secured loan are:
- loan secured by real estate;
- pledge of any transport property or pledge of vehicle title;
- collateral secured by a third party, that is, a loan secured by a surety.
The term, loan amount and interest rate on it directly depend on the main type of loan security.
Who can get a loan and what documents are needed
Forms and types of secured loans are different, but the requirements for the borrower remain unchanged. To receive a cash loan, any of the potential borrowers must meet the standard requirements. These are:
- Having a valid passport of a citizen of the Russian Federation.
- You must have a permanent registration in one of the many regions of the Russian Federation.
- The borrower must be at least eighteen years of age.
- You must have at least three calendar months of work experience at the place of work indicated in the questionnaire of a potential borrower.
- It is advisable to provide the bank with a certificate confirming income in the form of a bank or 2 personal income tax, but with any type of loan repayment security, there may be no need to provide a certificate.
- Certificate of ownership of own property.
In addition to the main package of certificates, for a greater likelihood of a loan and a reduction in the interest rate on it, the following documents should be provided to a financial institution:
- voluntary he alth insurance policy;
- TIN of a potential borrower;
- a foreign passport, while it is desirable to have marks of travel abroad for the last six months or twelve months.
Types of collateral
To secure a loan, the types of collateral can be varied. It is possible to pledge an apartment or a room in a hostel, as well as a private house or land property.
Types of loan repayment security include:
- Pledge from any real estate. They can serve as an apartment of primary or secondary housing.
- Pledge of a land plot with or without utilities.
- Pledge of a car or other vehicle, including a construction vehicle.
- Pledge under the signature of the surety.
Pledge of property
One of the most popular types of loan security is property pledge. They can be any real estate, including apartments in a residential building, dorm rooms or any room that can be rented out.
In order to provide a pledge of immovable property to the bank, it is necessary to present to the bank documents fixing the ownership of real estate.
When pledging equipment or precious metals, certificates are not required, one passport will suffice. You can also prepare documents and checks that fix the purchase with a specificface.
An equally common type of loan security is the pledge of any vehicle.
To do this, a potential borrower must provide the bank with a certificate of ownership of such a property. This vehicle can be either a personal car, or trucks, cranes, and so on. The presence of a passenger vehicle is one of the most common types of collateral to secure a loan. To do this, it is enough to provide a technical passport for a car to a bank or any other microfinance organization.
In order to offer an existing vehicle as collateral, except for the TCP, you must:
- provision of a passport;
- the presence of SNILS, for older people it will be replaced by a pension certificate;
- salary certificate;
- and, of course, a certificate of ownership of a vehicle will be a mandatory document.
Providing repayment by a third party
In addition to the above types of bank loan security, there is a loan secured by third parties.
Any citizen of the Russian Federation who is twenty-five years old can act as a guarantor. The guarantor, in addition to the passport, is obliged to provide a financial institution with a certificate confirming his income. It can be issued in the form of a bank or 2personal income tax. At the same time, the income of the guarantor for the last three months should not be less than fifteen thousand rubles a month.
In the event that a potential borrower is unable to make payments on his loan obligations, they are transferred to the "shoulders" of his guarantor. He will be required to make monthly loan commitments.
Deposit of apartment
One of the widely known types of bank loan security is the pledge of an apartment. It should also include mortgage lending. It is worth doing this, since an apartment or other residential premises becomes the property of the borrower only after the full repayment of all loan obligations to a financial institution.
In case of default on credit obligations, any of the pledged real estate becomes the property of the bank.
After the type of bank loan collateral has been determined, it is worth putting in order all the documents necessary for this procedure.
First of all, you should make sure that the passport with which you confirm your identity as a citizen of the Russian Federation is valid. Otherwise, you can forget about getting a loan. It doesn't matter if it's backed by something or not.
The borrower's SNILS is also required. It is required to check the credit history of a potential borrower at any of the financial services bureaus.
Should I take a secured loan
To take or not a loan secured by movable oranother type of property, as well as on behalf of third parties, depends only on the solvency of the potential borrower of the financial institution.
If the future credit client of the bank is not completely sure of his solvency, then it is better not to risk your property. In cases where the borrower is reliable, and loan security is necessary only to lower the annual lending rate, then it is definitely worth using it.
The services of a guarantor should not be neglected by borrowers who have just turned eighteen or, on the contrary, a potential client has just retired.
It is worth considering that in case of evasion of obligations to repay the loan provided by the bank, the property left as collateral will be seized.
Well, if a specific person vouched for a potential borrower, then all loan obligations will be transferred to him.
It is for this reason that the question of whether to leave your property as a pledge to a financial institution remains open to this day. For some, this offer seems to be the most profitable, but for some, it is only a last resort.
Whatever situation you find yourself in, it is worth taking into account all your risks, whether you are ready to sacrifice your movable or immovable property or it will really only be a clear security and proof of your solvency.